Irvine, CA – July 25, 2023 - Faris Lee, a leading retail advisory and investment sales firm, is pleased to announce the successful sale of a prime investment property on Oahu, Hawaii. The freestanding building, leased by 7-Eleven, was purchased all cash for $4,000,000 at a 3.75% cap rate.
Phil Ramming, Senior Managing Director represented the seller and sourced a private investor based in Hawaii who was in a 1031Exchange.
The offering presented an opportunity to acquire a 7-Eleven, a top ranked investment grade tenant, rated S&P AA-, on a long term absolute tripe net lease relieving the landlord of all responsibilities as well as providing stability and a favorable income stream for the investor.
The lease also includes a 10% rent increase in February 2024 and every 5 years during the renewal options, ensuring continued rental growth.
The building was completely renovated and expanded by 7-Eleven in January 2019, reflecting the tenant's commitment to maintaining a modern and attractive location.
The property is strategically located on the Kamehameha Highway, near key attractions such as the Honolulu International Airport, Pearl Harbor National Memorial, and Aloha Stadium. It benefits from a high traffic count of over 51,000 vehicles per day. The surrounding area boasts a household average income of $116,000 within a three-mile radius. The population is projected to reach 103,153 within the same radius over the next five years.
As an essential retailer, 7-Eleven remained open and operating throughout the COVID-19 pandemic, consistently fulfilling rental obligations each month.
This successful transaction exemplifies Faris Lee's expertise in achieving high water pricing at record breaking cap rates and underscores the value of prime retail properties in desirable locations. The sale of this rare O'ahu Hawaii single tenant net lease property further solidifies Faris Lee's position as a market leader in the retail investment market.
About Faris Lee Investments:
Faris Lee Investments is a retail brokerage advisory firm founded in 1996 and is based in Irvine, California. The firm specializes in commercial real estate investment sales, brokerage, and advisory services. In addition, the firm provides a national marketing platform of properties for sale, asset appraisal, property valuation, debt structuring, negotiation, market research, and analysis services. Faris Lee combines underwriting and research that exceeds industry standards with a marketing strategy to transform investment potential, enhance value and provide their clients the competitive advantage needed when making investment decisions. The firm also serves as institutional advisors in the areas of acquisitions and dispositions, merchant banking, distressed asset disposition, private equity, and corporate sale-leaseback. For more information, visit www.farislee.com